Calculate the Ending Inventory Using LIFO for a Company That

question 122

Essay

Calculate the ending inventory using LIFO for a company that uses a perpetual inventory system,using the information given below.
$$\begin{array} { | l | c | r | } \hline & \text { Units } & \text { Unit Cost } \\\hline \text { Beginning inventory } & 100 & \$ 10 \\\hline \text { Aug. 5 purchased } & 40 & 12 \\\hline \text { Aug. 10 sold } & 60 & -\\\hline \text { Aug. 15 purchased } & 70 & 13 \\\hline \text { Aug. 25 sold } & 50 &- \\\hline\end{array}$$

---

Definitions:

Conversion Costs

Costs associated with converting raw materials into finished products, typically including labor and manufacturing overhead.

Conversion Costs

Costs in manufacturing that are directly related to converting raw materials into finished goods, primarily consisting of labor and overhead expenses.

Direct Material Costs

The cost of raw materials directly used in the production of goods.

Predetermined Rate

A rate established before the start of a project or period, often used in budgeting and costing, to assign overhead costs to specific activities.